DECLINE IN NET INCOME AT RGA IN Q1, BUT OPERATING INCOME IS UP

Life reinsurer Reinsurance Group of America (RGA) has booked a net income of $123.3m for the first quarter, down from $148.9m in the same period last year. However, operating income rose to $112.4m, from $106.9m in the first quarter of 2011. Net premium rose to $1.86bn from $1.74bn. Investment income fell to $340.9m from $371.0m. CEO and president A Greig Woodring said that "global claims experience was slightly adverse, with strong results in Canada offset by higher-than-expected claims in the US and the UK". He said that overall the company was pleased with the Q1 results, particularly in Canada and Asia-Pacific. Segmentally, the US reported pre-tax income of $49.8m for Q1, down from $79.4m in Q1 2011, although operating income only declined to $62.9m from $66.0m. Net premiums were up 9% year on year to $1.02bn. In Canada pre-tax income was up to $55.1m from $29.9m, with operating income up to $46.7m from $25.5m. This reflected very favourable mortality experience. Net premiums were up only slightly to $218.2m, from $215.0m. In Asia-Pacific pre-tax net income was up 46% in Q1 to $32.1m, helped by favourable mortality experience, while in Europe and South Africa pre-tax net income fell to $6.6m from $22.5m, mainly because of higher-than-expected critical illness claims in the UK. The Corporate & Other segment reported a pre-tax loss of $5.7m in Q1, down from a gain of $4.8m the previous Q1.